The Chicago Mercantile Exchange (CME) is preparing to launch Solana futures, potentially heralding the approval of the first US SOL ETFs.
Launch of Solana Futures
On March 17, the Chicago Mercantile Exchange (CME) is set to launch Solana futures contracts. These contracts will be among the first regulated Solana futures to hit the US market, following Coinbase's February launch. Chris Chung, founder of the Titan platform, stated that such futures' introduction might expedite the approval of SOL-based ETFs.
Solana's Development Beyond Memecoins
Solana futures and ETFs will help expand the network's success beyond memecoins, which were central to the network's success in 2024. These products will attract more serious and stable capital and open doors for new uses, such as payments and remittances. Despite memecoin trading being a significant revenue source, activity on the Solana network declined after scandals in February.
Rivaling Ethereum
Cryptocurrency trading volumes on Solana continue to rival the entire Ethereum ecosystem. Chung expects Solana ETFs to gain traction among retail investors due to challenges faced by rival Ethereum. While Ethereum struggles with pricing after the Dencun upgrade cut transaction fees, Solana shows better returns. Bloomberg Intelligence assesses the odds of the SEC approving Solana and Litecoin spot ETFs at 70%.
The upcoming launch of Solana futures on CME may be a significant step towards the approval of ETFs based on this asset, extending its application beyond memecoins and strengthening its position against Ethereum competition.
